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Netflix (NFLX) Partners With Ubisoft to Expand Gaming Portfolio
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Netflix (NFLX - Free Report) recently announced that it has inked a partnership with Ubisoft, under which, three mobile games will be developed exclusively for its users. The games based on the Valiant Hearts, Mighty Quest and Assassin's Creed franchises will be available beginning in 2023. The games will include no ads or in-game purchases.
Netflix’s ongoing push into video games aims at improving viewers’ engagement with the platform amid rising competition in the streaming space. Netflix is facing tough competition from the likes of Disney (DIS - Free Report) , Comcast (CMCSA - Free Report) and Paramount Global (PARA - Free Report) .
Netflix is suffering from stiff competition in the streaming space from the likes of Disney+, Amazon Prime Video, Apple TV+, HBO Max, Peacock, Paramount+ and TikTok. Moreover, the unfavorable impact of account sharing, a weak economy, multi-decade-high inflation and the Russia-Ukraine conflict are expected to hurt profitability.
In the second quarter of 2022, Netflix lost 0.97 million paid subscribers globally, lower than its estimate of losing two million users. It had added 1.54 million paid subscribers in the year-ago quarter. The company currently expects to gain one million paid subscribers in the third quarter of 2022.
Will the New Cheaper Ad-Tier & Strong Game Content Aid Netflix Shares?
Netflix’s shares have declined 61.2% year to date compared with the Zacks Consumer Discretionary sector’s decline of 31.8%.
In June, Netflix confirmed that it is set to launch an ad-supported tier to bring more users to the platform. The new tier will cost less than the current ad-free service and is part of a plan to make Netflix more attractive to cost-conscious consumers.
Netflix recently hired two of Snap’s top executives to help in building its ad business. The company has already inked a partnership with Microsoft that makes the latter its technology and advertising sales partner.
However, Netflix is expected to face stiff competition in the ad-supported streaming market. Disney+ is also set to offer its ad-supported tier starting Dec 8, 2022. The company has reached out to affiliates and recently signed a new agreement with the ad-tech company, The Trade Desk, as part of an effort to boost the commercial inventory it sells via connected TV.
Comcast’s Peacock also offers a free-to-watch tier with ad support that has about 40,000 hours of content. Peacock is well poised to grow, owing to its vast library of IPs and new productions.
Comcast and Paramount Global’s joint venture, SkyShowtime, is set for launch on Sep 20 in the Nordic countries of Denmark, Finland, Norway and Sweden. SkyShowtime will replace Paramount+ in these countries.
SkyShowtime promises solid content with thousands of hours of quality entertainment, including the exclusive television premieres of first-run theatrical films from Paramount’s studios, Paramount Pictures and Universal Pictures.
Additionally, SkyShowtime will feature new premium scripted series, kids and family content, as well as titles from the content library of Universal Pictures, Paramount Pictures, Nickelodeon, DreamWorks Animation, Paramount+, SHOWTIME, Sky Studios and Peacock.
Nevertheless, Netflix is expected to continue dominating the streaming space, courtesy of its diversified content portfolio, which is attributable to heavy investments in the production and distribution of localized, foreign-language content.
Moreover, this Zacks Rank #3 (Hold) company is planning to release 30 new gaming titles on its platform by the end of this year. Netflix already has several shows based on games like The Witcher, Arcane (based on League of Legends), The Cuphead Show, DOTA: Dragon’s Blood and Castlevania. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Netflix recently introduced Lucky Luna and also announced several upcoming games including IMMORTALITY, Wild Things: Animal Adventures, Rival Pirates and more.
Netflix has also been taking the route of acquisitions to expand its footprint in the gaming industry. Since launching the game initiative in November 2021, the company has acquired several studios including Finland’s Next Games, Texas-based developer Boss Fight Entertainment and Night School Studio, the developer best known for its supernatural mystery adventure, Oxenfree.
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Netflix (NFLX) Partners With Ubisoft to Expand Gaming Portfolio
Netflix (NFLX - Free Report) recently announced that it has inked a partnership with Ubisoft, under which, three mobile games will be developed exclusively for its users. The games based on the Valiant Hearts, Mighty Quest and Assassin's Creed franchises will be available beginning in 2023. The games will include no ads or in-game purchases.
Netflix’s ongoing push into video games aims at improving viewers’ engagement with the platform amid rising competition in the streaming space. Netflix is facing tough competition from the likes of Disney (DIS - Free Report) , Comcast (CMCSA - Free Report) and Paramount Global (PARA - Free Report) .
Netflix is suffering from stiff competition in the streaming space from the likes of Disney+, Amazon Prime Video, Apple TV+, HBO Max, Peacock, Paramount+ and TikTok. Moreover, the unfavorable impact of account sharing, a weak economy, multi-decade-high inflation and the Russia-Ukraine conflict are expected to hurt profitability.
In the second quarter of 2022, Netflix lost 0.97 million paid subscribers globally, lower than its estimate of losing two million users. It had added 1.54 million paid subscribers in the year-ago quarter. The company currently expects to gain one million paid subscribers in the third quarter of 2022.
Will the New Cheaper Ad-Tier & Strong Game Content Aid Netflix Shares?
Netflix’s shares have declined 61.2% year to date compared with the Zacks Consumer Discretionary sector’s decline of 31.8%.
Netflix, Inc. Price and Consensus
Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote
In June, Netflix confirmed that it is set to launch an ad-supported tier to bring more users to the platform. The new tier will cost less than the current ad-free service and is part of a plan to make Netflix more attractive to cost-conscious consumers.
Netflix recently hired two of Snap’s top executives to help in building its ad business. The company has already inked a partnership with Microsoft that makes the latter its technology and advertising sales partner.
However, Netflix is expected to face stiff competition in the ad-supported streaming market. Disney+ is also set to offer its ad-supported tier starting Dec 8, 2022. The company has reached out to affiliates and recently signed a new agreement with the ad-tech company, The Trade Desk, as part of an effort to boost the commercial inventory it sells via connected TV.
Comcast’s Peacock also offers a free-to-watch tier with ad support that has about 40,000 hours of content. Peacock is well poised to grow, owing to its vast library of IPs and new productions.
Comcast and Paramount Global’s joint venture, SkyShowtime, is set for launch on Sep 20 in the Nordic countries of Denmark, Finland, Norway and Sweden. SkyShowtime will replace Paramount+ in these countries.
SkyShowtime promises solid content with thousands of hours of quality entertainment, including the exclusive television premieres of first-run theatrical films from Paramount’s studios, Paramount Pictures and Universal Pictures.
Additionally, SkyShowtime will feature new premium scripted series, kids and family content, as well as titles from the content library of Universal Pictures, Paramount Pictures, Nickelodeon, DreamWorks Animation, Paramount+, SHOWTIME, Sky Studios and Peacock.
Nevertheless, Netflix is expected to continue dominating the streaming space, courtesy of its diversified content portfolio, which is attributable to heavy investments in the production and distribution of localized, foreign-language content.
Moreover, this Zacks Rank #3 (Hold) company is planning to release 30 new gaming titles on its platform by the end of this year. Netflix already has several shows based on games like The Witcher, Arcane (based on League of Legends), The Cuphead Show, DOTA: Dragon’s Blood and Castlevania. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Netflix recently introduced Lucky Luna and also announced several upcoming games including IMMORTALITY, Wild Things: Animal Adventures, Rival Pirates and more.
Netflix has also been taking the route of acquisitions to expand its footprint in the gaming industry. Since launching the game initiative in November 2021, the company has acquired several studios including Finland’s Next Games, Texas-based developer Boss Fight Entertainment and Night School Studio, the developer best known for its supernatural mystery adventure, Oxenfree.